Labor Day, also known as May Day, is a public holiday in Paraguay. It is celebrated annually on the first day of May to honor the economic and social achievements of workers. The tradition of observing this holiday stems from the labor union movements of the 19th century when activists fought for an eight-hour workday. This day typically involves various ceremonies and celebrations across the country to acknowledge the indispensable contributions of the workforce.

On May Day, the streets of Paraguay come alive with festive events, including parades, demonstrations, and rallies organized by trade unions. The President and other dignitaries deliver speeches, emphasizing the importance of labor rights and decent working conditions. Schools, offices, and most businesses remain closed for the day, allowing everyone to partake in the festivities. The vibrant procession is often filled with workers waving banners and flags, symbolizing unity and strength.

Furthermore, May Day serves as a platform to address labor issues and workers' rights in Paraguay. Activists and labor union leaders utilize this day to highlight areas of labor rights that need attention and improvement. In addition to the festivities and demonstrations, families and friends often gather for private celebrations. Labor Day is not just a day off from work; it is a day dedicated to recognizing and appreciating the hard work and dedication of the workers who are instrumental in Paraguay's progress and development.